Funds

Warehouse REIT expects an online shopping boost, dividend maintained

Warehouse REIT, the AIM-listed specialist warehouse investor has revealed a resilient set of results for the financial year ended 31st March 2020.

Revealing a 2.5% like-for-like increase in the valuation of its portfolio and a 3.3% increase in the dividend per share at 6.2p – the warehouse investor revealed resilience in its operations.

Its results suggested that there has been little disruption to its rent collection despite the pandemic – with a collection rate of 94% for the quarter. It also revealed that it was looking to maintain its dividend target of 6.2p for the forthcoming financial year.

Hopes of a strong performance for the 2021 financial year were supported by an explanation of how the business is equipped to benefit from the changing commercial landscape.

Warehouse REIT revealed that it is well-placed to benefit the growing trend of online shopping – half of its customers have an online sales / distribution operation. Amazon UK is currently one of its top 10 tenants – contributing £1.4m of rent per annum.

“The occupational market for urbanwarehouses remains strong, with occupiers seeking logistics and distribution space as consumers increasingly shop online during theCOVID-19 pandemic. This may well accelerate the structural trends in the market, which are underpinned by the growth in internet shopping and last-mile delivery. In the short term, we areworking closely with theGroup’s tenants to support themwhere necessary, while remaining rigorously focused on cash collection.”

Andrew Bird, Managing Director of the Investment Advisor, Tilstone Partners Limited

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